Recommendation from Software & IT Services and Automobile & Ancillaries Sector
Ratin Biswass / 22 Jan 2026 / Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Hot Chips, Hot Chips, Recommendations

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.
The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.[EasyDNNnews:PaidContentStart]
Tech Mahindra Ltd
CMP - ₹1,678.30
BSE CODE 532755
Volume 33,607
Face Value ₹5
Target ₹1,815 - ₹1,845
Stoploss ₹1,560 (CLS)

Tech Mahindra is a leading IT services and digital solutions company. It has a strong presence in telecom, BFSI, manufacturing and technology verticals, serving clients across key global markets. It provides consulting, software, cloud, AI, cybersecurity and enterprise solutions that help businesses modernize and scale. During Q3FY26, the company posted a notable performance, with revenue surging 8 per cent year-onyear to ₹14,393 crore. Profitability also improved, as net profit surged to ₹1,119 crore compared with ₹989 crore in the corresponding quarter of the previous year. Management reiterated its target of improving operating margins, aiming toward 15 per cent by FY27. While the company acknowledged a challenging global IT spending environment and some headwinds in legacy segments, management’s commentary reflects confidence in demand recovery, especially driven by digital transformation, cloud and AI. Hence, considering the company’s growth potential, we recommend BUY.
Force Motors Ltd
CMP - ₹20,795.80
BSE CODE 500033
Volume 5,059
Face Value ₹10
Target ₹22,450 - ₹22,870
Stoploss ₹19,340 (CLS)

Force Motors is an Indian automotive manufacturer, established in 1958, with a focus on shared mobility solutions and light commercial vehicles. Force Motors operates a robust network of over 300 sales and service touchpoints across India. It is also supported by international distributors in more than 25 countries. In the second quarter of FY26, the company delivered a decent financial showing, with revenue rising 7 per cent year-on-year to ₹2,081 crore. Earnings witnessed a sharp improvement, as net profit climbed to ₹351 crore from ₹135 crore in the same period last year, reflecting healthier operating performance and improved profitability. The company, in its monthly business update, reported that sales of its products during December 2025, including domestic and export markets, recorded a strong 50 per cent growth. Considering the expectation of a strong Q3 performance, supported by robust monthly sales data, a pickup in demand following GST cuts, and optimism ahead of the upcoming Budget, we recommend BUY.
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